BofA On Hook In Trust Account Investment Suit

Law360, New York (May 11, 2012, 2:04 PM EDT) -- A federal judge on Thursday refused to dismiss a putative class action claiming Bank of America Corp. breached its fiduciary duty by investing trustee accounts it administers in the bank's affiliated mutual funds, saying the state law claims weren't preempted by federal law.

U.S. District Judge Jeffrey S. White rejected Bank of America's argument that Ellen Stoody-Broser's claims in her amended complaint were preempted by the Securities Litigation Uniform Standards Act, the same reason he dismissed her original complaint in 2009.

Stoody-Broser's original complaint was dismissed...
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